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Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy

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  • Gary L. Hunt

Abstract

Partially degenerate nested logit (NL) models have broad applicability in regional science. However, the literature on them is relatively sparse and confusion exists on some aspects of identification and related matters. This paper addresses a number of conceptual and econometric aspects of partially degenerate NL models. These include identification, scaling, invariance, and consistency with the utility‐maximizing postulate that underlies discrete choiceanalysis. This is accomplished within the larger, encompassing framework of nondegenerate NL models of which the partially degenerate model is a special case.

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  • Gary L. Hunt, 2000. "Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 89-113, February.
    • Handle: RePEc:bla:jregsc:v:40:y:2000:i:1:p:89-113
    DOI: 10.1111/0022-4146.00166
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    1. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    2. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," DEM Discussion Paper Series 17-15, Department of Economics at the University of Luxembourg.
    3. Horst Raff & Michael Ryan & Frank Stähler, 2012. "Firm Productivity and the Foreign‐Market Entry Decision," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(3), pages 849-871, September.
    4. José L. Oviedo & Alejandro Caparrós, 2013. "Revealed preference land use models in Andalusia: integrating commercial and environmental variables," Working Papers 1303, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    5. Nils Herger, 2013. "On Discrete Location Choice Models," Working Papers 13.02, Swiss National Bank, Study Center Gerzensee.
    6. Yueming (Lucy) Qiu & Xin Su & Yi David Wang, 2017. "Factors influencing commercial buildings to obtain green certificates," Applied Economics, Taylor & Francis Journals, vol. 49(20), pages 1937-1949, April.
    7. Florian Heiss, 2002. "Specification(s) of Nested Logit Models," MEA discussion paper series 02016, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    8. Kurz, Verena, 2018. "Nudging to reduce meat consumption: Immediate and persistent effects of an intervention at a university restaurant," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 317-341.
    9. Steven D. Pizer & Austin B. Frakt & Roger Feldman, 2008. "Predicting risk selection following major changes in medicare," Health Economics, John Wiley & Sons, Ltd., vol. 17(4), pages 453-468, April.
    10. Lahr, Michael L. & Gibbs, Robert M., 2002. "Mobility of Section 8 families in Alameda County," Journal of Housing Economics, Elsevier, vol. 11(3), pages 187-213, September.
    11. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    12. Rinaldo Brau & Matteo Lippi Bruni, 2008. "Eliciting the demand for long‐term care coverage: a discrete choice modelling analysis," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 411-433, March.
    13. Anna Maria Pinna & Rinaldo Brau & Vania Manuela Licio, 2016. "Broadening or jumping? An analysis of the first export market of European Union firms," Environment and Planning C, , vol. 34(4), pages 592-616, June.
    14. Baltzopoulos, Apostolos & Braunerhjelm, Pontus & Tikoudis, Ioannis, 2012. "Spin-off: Individual, Firm, Industry and Regional Determinants," Working Paper Series in Economics and Institutions of Innovation 265, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    15. Kurz, Verena, 2017. "Nudging to reduce meat consumption: Immediate and persistent effects of an intervention at a university restaurant," Working Papers in Economics 712, University of Gothenburg, Department of Economics.
    16. William Greene, 2007. "Discrete Choice Modeling," Working Papers 07-6, New York University, Leonard N. Stern School of Business, Department of Economics.
    17. Paula A. Calvo & Ilse Lindenlaub & Ana Reynoso, 2021. "Marriage Market and Labor Market Sorting," NBER Working Papers 28883, National Bureau of Economic Research, Inc.
    18. Florian Heiss, 2002. "Structural choice analysis with nested logit models," Stata Journal, StataCorp LP, vol. 2(3), pages 227-252, August.
    19. Santos, Georgina & Maoh, Hanna & Potoglou, Dimitris & von Brunn, Thomas, 2013. "Factors influencing modal split of commuting journeys in medium-size European cities," Journal of Transport Geography, Elsevier, vol. 30(C), pages 127-137.
    20. Michael J. Greenwood & Gary L. Hunt, 2003. "The Early History Of Migration Research," International Regional Science Review, , vol. 26(1), pages 3-37, January.
    21. Hunt, Gary L. & Mueller, Richard E., 2010. "Returns to Skill, Tax Policy, and North American Migration by Skill Level: Canada and the United States 1995 - 2001," CLSSRN working papers clsrn_admin-2010-11, Vancouver School of Economics, revised 26 Mar 2010.
    22. Herger, Nils & McCorriston, Steve, 2013. "On discrete location choice models," Economics Letters, Elsevier, vol. 120(2), pages 288-291.
    23. Danis, Michelle A. & Pennington-Cross, Anthony, 2008. "The delinquency of subprime mortgages," Journal of Economics and Business, Elsevier, vol. 60(1-2), pages 67-90.
    24. Jin, Fanglei & An, Kun & Yao, Enjian, 2020. "Mode choice analysis in urban transport with shared battery electric vehicles: A stated-preference case study in Beijing, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 95-108.

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